Question

Will the Globalization 3.0 strategy persist through the 21st century? If not, what will Globalization 4.0 look like? Several American companies such as Apple and GE have realized that they miscalculated the full cost of managing far-flung production operations and are bringing production back to the United States. Forbes magazine put the blame on managers who were focused on maximizing shareholder value rather than emphasizing the long -term future of the firm. That is, some managers looked only at labor costs and ignored the hidden costs of time and money trying to communicate quality and design concerns to workers across countries as well as unexpected costs to the supply chain from natural disasters or political threats. These factors combined with the new economics of energy (e.g., the growing supply of natural gas) and new technologies (robotics, artificial intelligence, 3D printing, and nanotechnology) are rapidly changing manufacturing and management decisions. Discuss the factors that managers of Apple or GE may consider as they focus on continuous innovation rather than the cost of manufacturing. How might governments with an interest in generating employment opportunities try to influence the decisions of firms? What other stakeholders may have an interest in bringing jobs back onshore and thus try to influence the decisions of firms? Consider the persuasive arguments and deals that might be struck. With changes to the location of production, what might Globalization 4.0 look like?